The prime minister’s announcement this week of a small business tax break is a “distraction tactic,” says the Red Deer and District Chamber of Commerce.
Chamber CEO Robin Bobocel said on Tuesday he believes Prime Minister Justin Trudeau is hoping the tax break will divert the business community’s attention — most of it negative — from the tax reform proposals rolled out in July.
Bobocel said the government has said it is reviewing and possibly revising its initial proposals “but they haven’t given any specifics whatsoever around how they would do that.
“We’re cautious in receiving this news from the federal government.”
The small business tax cut to nine per cent from 11 per cent was first proposed by former prime minister Stephen Harper’s government but then frozen by the Liberals, he said.
Trudeau had made it a campaign promise and is now following through at a time when the government is being heavily criticized for its tax reform package from many circles.
“They’re basically reinstating a process that was already determined by a previous government,” said Bobocel. “It’s not really new. It’s a re-announcement of something that was already going to happen.”
Bobocel said it’s important to keep up the pressure on the federal government to change measures that will punish business people and private corporations.
“They haven’t given us any specifics around how they plan to provide those proposals that would both suit their purposes to close tax loopholes without punishing small businesses.”
Bobocel said it is time for a royal commission on the tax code, a resolution put forward by Red Deer’s chamber at the national organization’s annual gathering last month and overwhelmingly supported by other chamber delegates.
“That’s what we want to see here, a royal commission on tax that takes the politics out of reviewing the tax code.”
It would also give all of the stakeholders to provide their input.
Bobocel grants that a royal commission would take a long time. But the wait would be worth it, he said.
The country’s chambers of commerce are united in the need to simplify the tax code, reduce compliance costs and make changes through a transparent process.
pcowley@reddeeradvocate.com
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